Less than 6 months to insulate rentals or face a $4000 fine

REINZ warns landlords they have
less than 6 months to insulate rental properties or face a
$4,000 fine

As people slowly make their way back
to the office, the Real Estate Institute of New Zealand
(REINZ) is warning landlords that they now have less than
six months to insulate their rental properties or they could
face a fine of up to $4,000 from the Ministry of Business,
Innovation and Employment (MBIE).

Any landlords who still
don’t comply after paying the penalty, may face further
action according to MBIE.

Bindi Norwell, Chief Executive
at REINZ says: “From 1 July 2019 ceiling and underfloor
insulation will be compulsory in all rental homes across New
Zealand. That deadline is now less than six months away, and
MBIE has warned that it will be proactively checking up on
landlords to ensure their rental properties meet the
requirements under the Residential Tenancies Act (RTA) by
the deadline.

“Landlords need to assess their current
insulation, check whether insulation can be installed and
the install or top up their insulation as required,”
continues Norwell.

“The insulation requirements were
announced under changes made to the RTA back in 2016, and
last year MBIE was already warning landlords that it would
be increasing its enforcement capabilities and that it
‘made no apologies for their approach’ so landlords need
to act now if they want to avoid a fine of up to $4,000,”
warns Norwell.

“One of the main issues is that there are
still a significant number of rental properties around the
country that need insulation and the Insulation Association
of New Zealand has already stated that it is gravely
concerned about the number of rental properties still to be
insulated,” points out Norwell.

“One other point that
many landlords haven’t picked up on is that they then must
ensure that all new tenancy agreements must include a
separately signed insulation statement covering what
insulation the home has, where it is, and what type,” she
continues.

While REINZ has been making a strong effort to
communicate with its members who are property managers, as
there is no regulation and no governing body for property
managers there is a high chance that a number of property
managers around the country will not have ensured that their
landlords meeting the requirements by 1 July. If the
industry was regulated, this could reduce the chance of the
legislation not being adhered to by rogue property
managers.

REINZ has welcomed the insulation requirements
as this will help to improve New Zealand’s housing stock
and also improve the health and wellbeing of our rental
population.

“With home ownership at its lowest level in
60 years, more and more Kiwis are renting, so it’s
essential we protect the health of those renting to ensure
we prevent respiratory and skin infections that can be
prevented by inadequate housing,” concludes
Norwell.

ENDS

Notes to
editors

• As a rough guide, MBIE has suggested
that the average cost for a professional installer to
install both ceiling and floor insulation is about $3,400
+GST for a 96m2 property. This would increase if the
property is larger

• Insulation can be installed in most
homes in a day. Waiting times for assessment, and for
scheduling the work, will vary depending on where you are in
the country, and the current demand

• Landlords can
visit the Insulation Association of New Zealand, the Energy
Efficiency Conservation Authority or MBIE’s Tenancy
Services website for helpful information in relation to the
insulation requirements

• REINZ has been working with
its property management members for some months now to help
them ensure their clients (landlords) meet the 1 July
deadline

• According to MBRI an estimated 67% of private
rental properties currently met the standard (March 18 –
the latest data available), an increase of just 7% since
July 2016. Estimates suggest there are between 126,000 and
220,000 rental homes which still need to be properly fitted
for
insulation.

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